Accountancy fees vary depending on the firm and so it is definitely worth shopping around.
A frequent problem with accountancy fees is that a lot of the time a quotation given to you will be estimated and therefore, if your work takes the accountant longer than expected, additional costs can be incurred. Similarly, many accountants will charge for the smallest of services such as signing something off or giving you advice over the phone. This is something you need to watch out for as the fees can really rack up if this is the basis on which your accountant operates.
Another thing to look out for is increasing fees. It is common for an accountant to up their prices each year slightly until one year you realise your paying far more than was initially agreed.
When shopping for an accountant, look out for ‘fixed fee’ quotations. This means that whatever price you are given will be all inclusive and therefore you are unlikely to be stung by hidden extras.
‘Pay monthly’ accountants can also be advantageous as the ‘pay as you go’ approach means you always know where you stand and eliminates the possibility of a larger- than- expected invoice arriving in the post.
It can also be worthwhile contacting an accountant to request a quotation tailored for your requirements rather than relying on what their website or leaflet says. This is beneficial as you can get a feel for what the company is like and establish the level of importance they place on customer care. For example, how willing to help they are and how easy it is to get through to them. Do they respond promptly to your email/ call and are they happy to go over your requirements and answer your questions for as long as you need?
Don’t forget that a lot of accountants are VAT registered and so look out for VAT charges on top of their fees. The current VAT rate is 20%. If your businesses is VAT registered also then you can claim these charges back, however if yours is not VAT registered you will need to incorporated these charges into your budget.
Here at The Accountancy Partnership, we work on a pay monthly basis. Our fees are fixed and all inclusive meaning that we do not charge extra for incidentals including any help, assistance or advice you may require. Please do not hesitate to contact us via email, telephone or live chat for a quote with no obligation.
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About The Author
MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.